Monthly Portfolio Allocation

It's once again time for my monthly portfolio allocation update.  I shifted some things around since last month and put more cash to work since the last update.  My overall portfolio allocation approach is to remain broadly diversified across a wide range of asset classes, effectively creating an "all weather" portfolio that should do well in any investing environment (the goal to achieve lower risk and higher return) and consistent with my Financial Fortress methodology.  

Here's the breakdown for this month:

Cash - 0.8%Stocks - 23.6% US Large Cap - 10.3% (60% actively managed in a trading portfolio and remainder is passively managed in retirement account)US Mid Cap - 3.2% (100% passively managed in retirement account)US Small Cap - 4% (75% passively managed in retirement account and 25% actively managed in a non-trading portfolio)International - 6.1% (100% passively managed in retirement account)Commodities - 6.4% (100% passively managed in retirement account)Bonds - 9.2% (100% passively managed in retirement account)Real Estate - 24.9% (26% passively managed in retirement account and remainder is actively managed investment property)Private Equity - 13.5% (includes Seed Invest and Republic investments - try to invest small amounts across a large number of companies following disruptive themes like artificial intelligence, genomics, fintech, etc.)Bitcoin - 12.5% (mix of direct Bitcoin ownership, MicroStrategy and GBTC)Gold / Silver / Other Alt - 6.7% (50% physical coins and 50% miner ETF's GDX and GDXJ)Other - 2.4%I'm very mindful of elevated stock and bond prices and risk, so I have tried to keep that exposure somewhat limited, even though performance has actually been quite good recently.  Cash position was reduced to "put the money to work," but I plan to increase cash position a bit more next month to have a bit more liquidity.  Since last month, I shifted more money to private equity (startup investments), Bitcoin (accumulation of more coins at current low prices) and also paid off my car loan.  

Thanks to used car inflation, my car appreciated 20% since I bought it about a month ago - ironically my best performing investment.  I know that won't be the case long term, but at least I don't have a car payment anymore, which should help me save a bit more each month.

I'm continuing to closely monitor the market situation for opportunities, but feel pretty good about my overall allocation right now.  I could probably increase my commodity exposure a little and as mentioned previously, increase cash a bit, but otherwise not much to do at this time.  I'm expecting continued market volatility for the rest of this year and like most observers, I'm expecting a stock market correction at some point of 10% to 20%, which would be healthy given extended valuations and a great buying opportunity.

Hopefully reviewing this allocation helps you understand how I operationalize my macro strategy views and Financial Fortress approach in a practical way.

I hope you find this post useful as you chart your personal financial course and Build a Financial Fortress in 2021.  To see all my books on investing and leadership, click here.  
  Stay safe, healthy and positive.